The market has recovered more rapidly than we experienced with previous downturns, although the individual rate of recovery has largely depended on the nature and effectiveness of the fiscal and public health responses in each country.
LME prices reached their lowest level in March-April 2020. They stayed flat at around 15% below January levels until May 2020. However, over the summer following China’s economic recovery, the outlook for commodity demand and prices started to improve. The 3rd quarter reflected a recovery trend and 4th quarter saw a sharp rise in LME prices as the vaccine development took shape and the dollar continued to weaken.
Towards the end of 2020, outbreaks of new variants of the virus created fresh uncertainty, especially in Europe. However, positive growth in the aluminium consuming sectors of automotive and construction indicate a strong rebound in 2021.
